Member Login
  1. Category
    2. /
  2. Investing
    3. /
  3. Energy Stocks
    4. /

Energy Stocks

What are energy stocks? 

Energy stocks represent partial ownership in companies that supply electricity and fuel for the global economy. The energy sector in Canada is vast, comprising a large portion of the TSX. Energy stocks include: 

  • Liquefied natural gas companies
  • Natural gas companies 
  • Oil companies 

(Renewable energy stocks are part of the TSX’s utilities sector.)

How can you pick energy stocks?

1. Look for companies with a promising future 

It’s no surprise that the energy sector is under intense scrutiny. With climate change at the front of many people’s minds (from governments to investors), energy companies, old and new, are constantly adapting to a new world. Many people want cleaner energy. And it’s the energy sector’s challenge to make clean energy available — and profitable, too. 

For that reason, investors will do well to look for innovative companies that are actively solving contemporary energy problems. Though we’re not suggesting investors ignore bigger companies in oil or natural gas, we are suggesting you keep an eye on the future as you’re picking your energy stocks. 

Given the direction the world is going, ask yourself: who will be around in 20, 30, or even 40 years? That’s one of the biggest questions you can answer as an energy stock investor. 

2. Analyze an energy company’s financial standing

The future of an energy company depends in part on how it’s handling its finances now. Given that prices within the energy sector are extremely volatile — just look at how the price of gas fluctuates — you want to be sure an energy company has the financial strength to withstand a recession. Some factors you may want to analyze include: 

  • Strong balance sheet: the company should have lots of liquid cash on hand, as well as a capacity to borrow (if needed). It should also have low amounts of debt and a high investment grade. 
  • Low production costs: the company shouldn’t be spending the majority of its revenue on producing energy. The company should have a stable revenue with minimal exposure to price fluctuations. 
  • Conservative dividend payout ratio: though everyone likes to make money on dividends, if a company dishes too much out, it could end up cutting or reducing its dividend program during hard times. 

3. Check here for our writer’s picks

Our writers are constantly analyzing the energy sector, as they look for stocks that are growing, as well as those that are under- or over- valued. Keep checking back here to see which stocks they recommend — and which they don’t. 

To learn more about Energy Stocks, take a look at our Guide to Energy Stocks for all the details.

Check back here for the most up to date information about energy stocks.

Top Articles

oil tank at night
Energy Stocks

2 Top TSX Energy Stocks to Buy in January 2023

| Robin Brown

Here are two top TSX energy stocks that had a great year in 2022 and could be primed for strong…

Read more »

An engineer works at a hydroelectric power station, which creates renewable energy.
Energy Stocks

Why Algonquin Power & Utilities Stock Slid 49.3% Last Year

| Tony Dong, MSc, CETF®

Here's why shares of AQN fell hard last year.

Read more »

energy industry
Energy Stocks

Is CNQ Stock a Buy in January 2023?

| Andrew Walker

CNQ stock is down from the 2022 high. Is it time to buy?

Read more »

Electricity high voltage pole and sky
Energy Stocks

Worried About a Recession? 3 TSX Giants to Outpace the Market

| Aditya Raghunath

Recession-resistant TSX stocks such as Fortis and Hydro One are well poised to deliver outsized returns to shareholders in 2023.

Read more »

A worker overlooks an oil refinery plant.
Energy Stocks

The Best Energy Dividend Stock for a Decade of Passive Income

| Aditya Raghunath

Canadian Natural Resources is a top TSX stock that has delivered stellar gains to long-term investors. Let's see why CNQ…

Read more »

oil and gas pipeline
Energy Stocks

Enbridge Is a High-Yielding Canadian Dividend Stock to Buy Now and Own Forever

| Adam Othman

Consider adding Enbridge stock to your portfolio, as it still trades below its all-time highs to capture its high-yielding dividend…

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Growth Stocks You Can Buy Right Now with Less Than $100

| Christopher Liew, CFA

Capital of less than $100 is enough to buy one of these three promising growth stocks that don't belong to…

Read more »

Electric car being charged
Energy Stocks

2 Energy Stocks You Can Buy Right Now to Play The EV Boom

| Adam Othman

Add these two Canadian renewable energy stocks to capitalize on the growing EV popularity.

Read more »

Recent Energy Stocks News

Aerial view of a wind farm
Energy Stocks

Brookfield Renewable Stock Climbs Higher: Time to Buy?

| Amy Legate-Wolfe

Brookfield Renewable stock (TSX:BEP.UN) continues to climb, but remains below the $40 mark. But that share price looks in view.

Read more »

Nuclear power station cooling tower
Energy Stocks

Up 35%, Is Cameco Stock a Buy in June 2024?

| Adam Othman

When a stock is bullish, and you have missed the starting point of the trend, it can be challenging to…

Read more »

Oil pumps against sunset
Energy Stocks

4 Top Energy Stocks (With Dividends) to Buy and Hold Forever

| Amy Legate-Wolfe

These four energy stocks are the best way to get in on long-term income from both growth and dividends.

Read more »

Man considering whether to sell or buy
Energy Stocks

Cameco Stock: Buy, Sell, or Hold?

| Amy Legate-Wolfe

Cameco stock (TSX:CCO) has risen by above 80% in the last year alone, and 14% in the last month. Will…

Read more »

Dice engraved with the words buy and sell
Energy Stocks

Brookfield Renewable Stock: Buy, Sell or Hold?

| Amy Legate-Wolfe

Brookfield Renewable stock (TSX:BEP.UN) has surged by 31% since earnings. Does this mean you should get in, or get out?

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Energy Stocks

2 Utility Stocks That Could Help Energize the AI Boom

| Joey Frenette

Canadian Utilities (TSX:CU) and another great utility stock could indirectly benefit from the rise of AI.

Read more »

green energy
Energy Stocks

Is it Too Late to Buy Brookfield Renewable Stock?

| Amy Legate-Wolfe

Brookfield Renewable (TSX:BEP.UN) stock has had a hard time getting shares above $40, so is it time to ditch the…

Read more »

Oil pumps against sunset
Energy Stocks

Lower Loonie? This Sector’s a Gusher Anyway

| Amy Legate-Wolfe

If the Canadian dollar weakens, this one industry is set to make enormous profits, and investors can get in on…

Read more »

Electricity pylons against a sunset
Energy Stocks

Northland Power Stock: Buy, Sell, or Hold?

| Amy Legate-Wolfe

Northland Power (TSX:NPI) stock continues to climb on the back of strong earnings, but with a CEO and president leaving,…

Read more »

oil and gas pipeline
Energy Stocks

Where Will Enbridge Stock Be in 3 Years?

| Jitendra Parashar

Despite its recent sharp gains, Enbridge (TSX:ENB) stock has the potential to continue inching up in the years to come…

Read more »

Nuclear power station cooling tower
Energy Stocks

Is Cameco Stock the Best Renewable Energy Stock for You?

| Amy Legate-Wolfe

While it's true that Cameco stock (TSX:CCO) looks like a strong clean energy solution, it's not actually even a renewable…

Read more »

Target. Stand out from the crowd
Energy Stocks

Here’s Why I Think Brookfield Renewable Stock Is 1 of the Best Deals on the TSX Today

| Amy Legate-Wolfe

Brookfield Renewable (TSX:BEP.UN) stock saw shares rise by about 35% since earnings, but even more is on the way.

Read more »

oil and natural gas
Energy Stocks

How Baytex Energy Lost 12% Last Month

| Andrew Button

Baytex Energy (TSX:BTE) stock fell 12% last month.

Read more »

bulb idea thinking
Energy Stocks

This Stock Is Miles Ahead of Its Industry: Is It a Buy Now?

| Amy Legate-Wolfe

This stock has proven to be well worth the investment, especially at a time with increasing demand for clean energy…

Read more »

Oil pumps against sunset
Energy Stocks

Is Suncor Energy Stock a Buy in 2024? 

| Chris MacDonald

Let's dive into whether Suncor Energy (TSX:SU) is a stock that's worth buying in this current environment or if investors…

Read more »

oil tank at night
Energy Stocks

Is CNQ a Buy Before its Upcoming Stock Split?

| Aditya Raghunath

CNQ stock is a high-dividend TSX energy giant with a growing dividend yield. Is CNQ stock a good buy right…

Read more »

Solar panels and windmills
Energy Stocks

How Brookfield Renewable Stock Gained 40% in a Month

| Amy Legate-Wolfe

Brookfield Renewable stock (TSX:BEP.UN) surged in share price from a landmark deal and strong earnings, leading to a 40% jump.

Read more »

analyze data
Energy Stocks

Check Out This Soaring Stock, up 469% in 5 Years, With More Gains Likely to Come

| Amy Legate-Wolfe

If there is perhaps one growth stock that's just taken over in the last five years, it's this monster of…

Read more »

gas station, car, and 24-hour store
Energy Stocks

Is it Too Late to Buy Suncor Stock?

| Karen Thomas, MSc, CFA

Suncor Energy stock has rallied big in the last year, but expect it to move higher as efficiencies keep rolling…

Read more »

Oil pipes in an oil field
Energy Stocks

TSX Energy Sector: Best Stocks to Buy in May 2024

| Karen Thomas, MSc, CFA

Energy stocks like Suncor are generating massive amounts of cash flows and paying out significant dividends.

Read more »

Man holding magnifying glass over a document
Energy Stocks

Bargain Hunters: Is it Too Late to Buy Enbridge Stock?

| Andrew Walker

Enbridge is up about 10% in recent weeks. Are more gains on the way?

Read more »

Oil pumps against sunset
Energy Stocks

A Dividend Giant I’d Buy Over Suncor Energy Stock

| Aditya Raghunath

Suncor Energy stock has crushed the broader markets in the last 20 years. But this TSX energy stock has beaten…

Read more »

oil tank at night
Energy Stocks

2 Incredibly Cheap Energy Stocks to Buy Now

| Christopher Liew, CFA

Two cheap energy stocks are the best deals in TSX’s top-performing sector in 2024.

Read more »

grow dividends
Energy Stocks

Growth Spurt: 2 TSX Stocks Set to Skyrocket

| Christopher Liew, CFA

Two growth stocks in expanding, niche markets are set to skyrocket further in 2024 and beyond.

Read more »

Nuclear power station cooling tower
Energy Stocks

Why Shares of Cameco Are Powering Higher

| Amy Legate-Wolfe

Cameco (TSX:CCO) shares have surged more than 400% in the last five years alone, with more growth on the way.

Read more »

stock analysis
Energy Stocks

Is Enbridge Stock a Good Buy in May 2024?

| Adam Othman

Boasting high-yielding dividends and a stable underlying business, Enbridge (TSX:ENB) might be a great buy for your self-directed investment portfolio…

Read more »

You Should Know This
Energy Stocks

Brookfield Infrastructure Is Up 9% After Earnings: What Investors Need to Know

| Christopher Liew, CFA

A large-cap stock with a low-risk and strong revenue profile is an investment opportunity for income, growth, or both.

Read more »

Group of industrial workers in a refinery - oil processing equipment and machinery
Energy Stocks

2 No-Brainer Energy Stocks to Buy Right Now for Less Than $500

| Jitendra Parashar

Here are two rallying Canadian energy stocks you can buy today with attractive dividend yields and growth potential.

Read more »

edit Businessman using calculator next to laptop
Energy Stocks

Could This Undervalued Stock Make You a Millionaire One Day?

| Karen Thomas, MSc, CFA

It's been a long wait, but Ballard Power finally seems to be gaining the kind of momentum that's game changing.

Read more »

calculate and analyze stock
Energy Stocks

Here’s Why it’s Not Too Late to Buy Brookfield Renewable Stock

| Amy Legate-Wolfe

BEP (TSX:BEP.UN) stock shares surged on earnings, but part of it was due to even more growth on the way…

Read more »

Solar panels and windmills
Energy Stocks

3 Incredibly Cheap Energy Stocks to Buy Now

| Amy Legate-Wolfe

Looking for a bargain? Here are three in the renewable energy sector.

Read more »

Golden crown on a red velvet background
Energy Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

| Amy Legate-Wolfe

Looking for dividends? I wouldn't count on Enbridge stock (TSX:ENB) forever. But there's another that's been a proven winner.

Read more »

Utility, wind power
Energy Stocks

5 Reasons to Buy Brookfield Renewable Stock Like There’s No Tomorrow

| Amy Legate-Wolfe

Brookfield Renewable stock (TSX:BEP.UN) is already up 36% since its record quarterly report. But more growth is certainly on the…

Read more »

Marijuana plant and cannabis oil bottles isolated
Energy Stocks

3 Canadian Value Stocks to Buy Right Now

| Aditya Raghunath

Undervalued Canadian stocks such as Secure Energy should be part of your shopping list in May 2024.

Read more »

grow money, wealth build
Dividend Stocks

Is Enbridge Stock a Buy in 2024?

| Karen Thomas, MSc, CFA

Enbridge stock has stalled in the last five years, but strong and growing demand should make 2024 a solid year.

Read more »

The sun sets behind a power source
Energy Stocks

Up by 34%: Is Algonquin Stock a Good Investment in May 2024?

| Adam Othman

With its debt load being a problem, does Algonquin stock warrant a place in your self-directed portfolio? Here is what…

Read more »

Gas pipelines
Energy Stocks

Is it Still Prudent to Invest in Enbridge Stock?

| Jitendra Parashar

Besides Enbridge’s reliable dividends, its strong financials and growth prospects still make it a great stock to hold for the…

Read more »

A small flower grows out of a concrete crack.
Energy Stocks

The Future Giants: 3 Emerging Stocks With Incredible (and Proven) Growth Potential

| Christopher Liew, CFA

Three growth stocks are sound investment prospects and future giants for their visible growth potential.

Read more »

Gas pipelines
Energy Stocks

Buy, Sell, or Hold Enbridge Stock?

| Demetris Afxentiou

Have you invested in Enbridge (TSX:ENB)? Here's a case for prospective and existing investors looking to buy, sell, or hold…

Read more »

Nuclear power station cooling tower
Energy Stocks

Is it Too Late to Buy Cameco Stock?

| Amy Legate-Wolfe

Uranium prices are booming, and so is Cameco stock (TSX:CCO). But investors should consider this if they think they missed…

Read more »